Marion County Commission nixes proposed pension bump for top managers

Published: Monday, July 8, 2013 at 5:43 p.m.

Last Modified: Monday, July 8, 2013 at 5:43 p.m.

County commissioners started their annual round of budget hearings Monday and by the end of the day found one significant place to cut.

The board rejected a request by County Administrator Lee Niblock to reclassify 20 senior managers under the state's pension system.

The change was Niblock's choice and unrelated to a state mandate for the county to increase the public contribution to the employees' retirement.

The proposal would not have increased the managers' individual salaries; however, it would have bumped up the county's contribution to their portion of the pension fund by a total of $158,141 per year, according to a county report.

The amounts would have increased the county's annual payments between $4,420 and $10,708 a year, depending on the job, with the cost staying with the post long after the current employees are gone.

Commissioners complained to Niblock that they were not told about the proposed expense until, as Commissioner Carl Zalak put it, they had asked the "stinking question" about the cost.

"That's where the mistrust comes in," Zalak said.

Commissioner Stan McClain noted that by including it in the budget and not spelling out the specific fiscal impact, Niblock's spending proposal resembled the budget offered by Sheriff Chris Blair.

Last week Blair told the board that he specifically did not ask for a tax increase, although his proposed budget included millions of dollars in new spending that would require higher taxes to pay for it.

Niblock defended his proposed changes, saying the board had directed him to keep overall costs constant and that the retirement expenditures for his top lieutenants were affordable — courtesy of cuts made elsewhere.

Commission Chairwoman Kathy Bryant chastised Niblock for that, noting he had been present with her in meetings with county-level elected leaders who, at the commission's urging, had not increased staff salaries.

"We've asked all our constitutional officers to hold the line and not do anything, and so I don't think it's appropriate for us," Bryant said.

"This needs to come out."

The rest of the board agreed.

Overall, the commission came away from the day with a commitment to hold the line on property tax rates.

While the board could not formally vote at Monday's workshop, commissioners reached a consensus to try to retain the current $3.89 per $1,000 of taxable value assessed to landholders countywide.

County Budget Director Michael Tomich noted that would be a tough task to accomplish with property values remaining relatively flat in the coming budget year.

"It's going to be very difficult to get to where you'd like to go," Tomich told the board.

Still, the board showed it was willing to drill down on some staff-requested expenditures to try to find savings.

For instance, commissioners questioned whether staffers who said they needed new vehicles could buy fuel-efficient sedans for their duties instead of new sport utility vehicles.

They also examined Assistant County Administrator Stuart McElhaney's request for a quality assurance manager to oversee ambulance calls.

McElhaney, who is also the county fire chief, explained that such a person was necessary to review ambulance calls because the ambulance crews face greater turnover and a "decreasing" experience level, which could expose the county to costly claims in the future.

Summer hires by the Parks and Recreation Department also came under scrutiny, since the board wanted to find a way to have people for those programs without triggering a state requirement to pay pension costs.

Commissioners weighed using money for payments slated in the years ahead for companies under the county's economic development program for more contemporary needs, as well as changing official policy to reduce the amount of cash reserves needed to cover costs at the start of the fiscal year.

At the direction of Bryant, county officials launched an inquiry with their counterparts in Polk County to find out more about Polk's "employee leasing" program, as a way to cut costs.

Commissioners reviewed 14 of their own departments on Monday and will continue the hearings today.

With the budget as it stands — before spending cuts the commission is considering — the county's base property tax rate paid by all landowners in Marion would go from $3.89 per $1,000 of taxable value to $4.98 per $1,000. That would be a 28 percent increase.

The main property levy has not been as high as the proposed amount since 2005, when it was set at $5.31 per $1,000.

For the owner of a home valued at $100,000 for tax purposes, for example, the change would mean a $109 increase in taxes.

<p>County commissioners started their annual round of budget hearings Monday and by the end of the day found one significant place to cut.</p><p>The board rejected a request by County Administrator Lee Niblock to reclassify 20 senior managers under the state's pension system.</p><p>The change was Niblock's choice and unrelated to a state mandate for the county to increase the public contribution to the employees' retirement.</p><p>The proposal would not have increased the managers' individual salaries; however, it would have bumped up the county's contribution to their portion of the pension fund by a total of $158,141 per year, according to a county report.</p><p>The amounts would have increased the county's annual payments between $4,420 and $10,708 a year, depending on the job, with the cost staying with the post long after the current employees are gone.</p><p>Commissioners complained to Niblock that they were not told about the proposed expense until, as Commissioner Carl Zalak put it, they had asked the "stinking question" about the cost.</p><p>"That's where the mistrust comes in," Zalak said.</p><p>Commissioner Stan McClain noted that by including it in the budget and not spelling out the specific fiscal impact, Niblock's spending proposal resembled the budget offered by Sheriff Chris Blair.</p><p>Last week Blair told the board that he specifically did not ask for a tax increase, although his proposed budget included millions of dollars in new spending that would require higher taxes to pay for it.</p><p>Niblock defended his proposed changes, saying the board had directed him to keep overall costs constant and that the retirement expenditures for his top lieutenants were affordable — courtesy of cuts made elsewhere.</p><p>Commission Chairwoman Kathy Bryant chastised Niblock for that, noting he had been present with her in meetings with county-level elected leaders who, at the commission's urging, had not increased staff salaries.</p><p>"We've asked all our constitutional officers to hold the line and not do anything, and so I don't think it's appropriate for us," Bryant said.</p><p>"This needs to come out."</p><p>The rest of the board agreed.</p><p>Overall, the commission came away from the day with a commitment to hold the line on property tax rates.</p><p>While the board could not formally vote at Monday's workshop, commissioners reached a consensus to try to retain the current $3.89 per $1,000 of taxable value assessed to landholders countywide.</p><p>County Budget Director Michael Tomich noted that would be a tough task to accomplish with property values remaining relatively flat in the coming budget year.</p><p>"It's going to be very difficult to get to where you'd like to go," Tomich told the board.</p><p>Still, the board showed it was willing to drill down on some staff-requested expenditures to try to find savings.</p><p>For instance, commissioners questioned whether staffers who said they needed new vehicles could buy fuel-efficient sedans for their duties instead of new sport utility vehicles.</p><p>They also examined Assistant County Administrator Stuart McElhaney's request for a quality assurance manager to oversee ambulance calls.</p><p>McElhaney, who is also the county fire chief, explained that such a person was necessary to review ambulance calls because the ambulance crews face greater turnover and a "decreasing" experience level, which could expose the county to costly claims in the future.</p><p>Summer hires by the Parks and Recreation Department also came under scrutiny, since the board wanted to find a way to have people for those programs without triggering a state requirement to pay pension costs.</p><p>Commissioners weighed using money for payments slated in the years ahead for companies under the county's economic development program for more contemporary needs, as well as changing official policy to reduce the amount of cash reserves needed to cover costs at the start of the fiscal year.</p><p>At the direction of Bryant, county officials launched an inquiry with their counterparts in Polk County to find out more about Polk's "employee leasing" program, as a way to cut costs.</p><p>Commissioners reviewed 14 of their own departments on Monday and will continue the hearings today.</p><p>With the budget as it stands — before spending cuts the commission is considering — the county's base property tax rate paid by all landowners in Marion would go from $3.89 per $1,000 of taxable value to $4.98 per $1,000. That would be a 28 percent increase.</p><p>The main property levy has not been as high as the proposed amount since 2005, when it was set at $5.31 per $1,000.</p><p>For the owner of a home valued at $100,000 for tax purposes, for example, the change would mean a $109 increase in taxes.</p><p><i>Contact Bill Thompson at 867-4117 or bill.thompson@starbanner.com.</i></p>